Danish Salaried Employees Act
Funktionærloven in plain English: who it covers and the key rights it gives salaried employees in Denmark.
What is the Danish Salaried Employees Act?
The Danish Salaried Employees Act – in Danish Funktionærloven, officially the Act on the legal relationship between employers and salaried employees – is a central part of Danish employment law. It sets minimum rights for salaried employees that cannot be agreed away to the employee's disadvantage.
The Act applies to Danish and international employees alike. If you employ people in Denmark, or are employed here yourself, it often decides your notice period, sick pay and rights on dismissal.
Who is a salaried employee in Denmark?
You are typically covered by the Act if you work more than 8 hours a week on average and your job falls within one of these groups:
- Office, shop and administrative work
- Technical and clinical work of a non-craftsman nature
- Managing or supervising other employees on the employer's behalf
- Work where the Act has been agreed in the employment contract
Company directors registered as management are not covered. Many collective agreements also refer to the Act, so check your contract.
Key rights under the Salaried Employees Act
Employer's notice period
The notice period depends on how long the employee has been employed, counted including the notice period itself. Notice is given to the end of a month.
| Length of employment (incl. notice) | Notice from employer |
|---|---|
| Up to 6 months | 1 month |
| 6 months to 3 years | 3 months |
| 3 to 6 years | 4 months |
| 6 to 9 years | 5 months |
| More than 9 years | 6 months |
Employee's notice period
A salaried employee can resign with one month's notice to the end of a month, unless a longer period has been agreed in writing.
Probation
A probation period of up to 3 months can be agreed in writing. During probation, the parties may agree a shorter notice of 14 days.
Sick pay
Salaried employees are entitled to full salary during illness. If agreed in writing, the employer may use the 120-day rule: after 120 days of sickness with pay within 12 months, the employment can be terminated with one month's notice.
Severance pay
Employees dismissed after long service are entitled to severance pay: one month's salary after 12 years, two months after 15 years and three months after 18 years of employment.
Unfair dismissal
An employee with at least one year of service who is dismissed without reasonable grounds may be entitled to compensation.
Good to know This page is general information, not legal advice. Contracts and collective agreements can give better terms than the Act.
What the Act means for international employees
For expats in Denmark, the Act is one of the biggest differences from employment in other countries – especially the notice periods and sick pay. When we employ people as Employer of Record in Denmark, the employment contract states clearly whether the Act applies, and payroll in Denmark follows the same terms.
Salaried Employees Act – frequently asked questions
What is Funktionærloven in English?
Funktionærloven is the Danish Salaried Employees Act, which sets minimum rights for salaried employees in Denmark.
How many hours do I need to work to be covered?
More than 8 hours a week on average, in a job type covered by the Act.
What is the 120-day rule?
If agreed in writing, the employer may terminate with one month's notice once the employee has received salary during sickness for 120 days within 12 months.